Suppose you were in a serious accident caused by a negligent party. You survived, but your life is forever changed. The physical pain, emotional trauma, and loss of enjoyment in daily activities begin to take a toll.
California law recognizes the profound impact of serious injuries on a person’s well-being. Under California Civil Code § 1431.2, non-economic damages such as pain and suffering, emotional distress, and loss of enjoyment of life are recoverable in personal injury claims.
If you suffer from these damages, you probably can no longer enjoy your favorite hobbies, your relationships suffer due to loss of consortium, and your overall quality of life declines. And when you file a personal injury claim, the insurance company limits your compensation to medical expenses and property damage, ignoring the emotional pain and suffering you’re enduring.
This is where non-economic damages come in. Unlike economic losses such as medical bills or lost wages, non-economic damages compensate for intangible losses—mental, emotional, and physical suffering that impact daily life. Unfortunately, insurance companies often downplay these damages, making it essential to work with an experienced attorney who understands how to secure fair compensation.
In this guide, we’ll break down the types of damages, explain the difference between economic and non-economic damages, and show how Farahi Law Firm’s legal team can help you fight for the maximum compensation you deserve.
What Are Non-Economic Damages?
Non-economic damages acknowledge an accident isn’t just about financial compensation—it’s about restoring a person’s mental health, emotional well-being, and dignity.
Common Types of Non-Economic Damages
- Pain and Suffering – The physical pain and discomfort caused by physical injuries, including chronic pain from catastrophic injuries like spinal cord injury or traumatic brain injury.
- Emotional Distress – Psychological effects such as anxiety, PTSD, and depression caused by the accident. Victims may require mental health treatment or therapy to recover.
- Loss of Enjoyment of Life—When injury victims can no longer engage in hobbies, sports, or activities they once loved, their overall quality of life diminishes.
- Loss of Consortium – Compensation for an injury’s impact on a victim’s relationships, including the loss of society, companionship, or intimacy with a spouse or family members.
- Punitive Damages – In cases of gross negligence or reckless behavior, courts may award exemplary damages to punish the at-fault party and prevent future harm.
What Is the Difference Between Economic and Non-Economic Damages?
Understanding the difference between economic and non-economic damages is crucial when filing a personal injury claim. While both types are essential for securing fair compensation, they cover different aspects of an injury victim’s losses.
Economic Damages (Tangible, Financial Losses)
These damages cover measurable financial losses that result from an accident, including:
- Medical expenses – Hospital bills, surgery, physical therapy, and ongoing treatment costs.
- Loss of earnings – Compensation for wages lost during recovery.
- Property damage – Repairs or replacement costs for vehicles and personal property.
- Pocket expenses – Out-of-pocket costs for transportation, home modifications, or medical equipment.
Non-Economic Damages (Intangible Losses)
Unlike economic damages, which have a fixed monetary value, non-economic damages compensate for losses that are subjective and difficult to quantify, including:
- Pain and suffering – Compensation for physical pain and emotional distress caused by the accident.
- Loss of enjoyment – The impact is mostly on hobbies, relationships, and daily life activities.
- Mental health damages – Anxiety, PTSD, and depression from the trauma of an accident.
Because non-economic damages are more complex to calculate, insurance companies often try to minimize or deny them. Working with personal injury lawyers in Los Angeles is crucial to ensuring you receive the maximum compensation possible.
How Courts Calculate Pain and Suffering
Unlike economic losses, which have clear documentation like medical records and invoices, non-economic damages require a different approach to valuation. Insurance companies and courts use two primary methods to determine compensation for pain and suffering:
1. Multiplier Method
- The Multiplies Method is the total economic damages (medical bills, lost wages) multiplied by a number (usually between 1.5 and 5) based on the severity of the injuries.
- Example: If an accident victim’s medical expenses are $50,000 and a multiplier of 3 is used, their non-economic damages would total $150,000.
2. Per Diem Method
- The Per Diem Method is a daily compensation rate assigned to the victim’s pain and suffering based on how long their injuries affect them.
- Example: If the victim’s recovery takes 200 days and they are awarded $200 per day, their total non-economic damages would be $40,000.
Factors that influence these calculations include:
- Medical records – Evidence of physical injuries, chronic pain, and required treatments.
- Expert testimony – Statements from health care providers and psychologists supporting the claim.
- Impact on daily life – Document lifestyle changes, emotional distress, and social limitations.
How Insurance Companies Minimize Non-Economic Damages
Insurance companies are known for using tactics to downplay or deny non-economic damages in personal injury claims. Since these damages are subjective and harder to quantify than medical expenses or property damage, insurers often challenge their validity.
Here’s how they do it:
- Claiming Pain and Suffering Is “Exaggerated”: Adjusters argue that intangible losses like emotional pain and loss of enjoyment cannot be “proven” with evidence downplaying your mental health issues, anxiety, PTSD, or depression.
- Blaming Pre-Existing Conditions: Insurers claim a victim’s spinal cord injury, chronic pain, or emotional distress existed before the accident, arguing ongoing medical issues are unrelated to the accident.
- Using Delayed Medical Treatment Against Victims: If a victim doesn’t seek immediate medical care, insurers argue that their injuries were minor or unrelated.
- Pressuring Victims Into Quick, Low Settlements: Once a settlement is accepted, victims cannot request additional compensation, even if their physical pain worsens. That’s why adjusters often offer lowball settlements before victims fully understand the long-term impact on their daily lives.
Working with an experienced attorney like Farahi Law Firm ensures insurance companies do not take advantage of victims like you. Our expert legal team fights to secure maximum compensation for non-economic damages and protect victims from these tactics.
Farahi Law Firm Helps Injury Victims Get Maximum Compensation
After an accident, non-economic damages play a crucial role in compensating victims for pain and suffering, emotional distress, and loss of enjoyment of life. Unfortunately, insurance companies often try to minimize these claims, making it essential to have an experienced attorney.
Whether you are dealing with physical pain, emotional trauma, or a reduced quality of life, our award-winning legal team will fight to ensure you receive the justice you deserve. Consulting our dedicated legal team secures the money for the medical treatment you need and the money you deserve.
No Upfront Fees – You Pay Nothing Unless We Win! Contact us today for a free consultation and take the first step toward financial and emotional recovery.
